QFI.L Share News (QFI)

(Sharecast News) - Heavy fuel oil and biofuel alternative supplier Quadrise updated the market on progress with its new, "cleaner" low carbon fuel 'bioMSAR', and its active 'MSAR' projects with Mediterranean Shipping Company (MSC), its industrial client in Morocco, and Greenfield in Utah on Monday.
The AIM-traded firm said it was seeing "increasing interest" in bioMSAR from all segments of the energy market being targeted.

It said the testing of bioMSAR with MSC had been "significantly" accelerated, with it to be the first fuel tested during the 'LONO' programmes.

Looking at Morocco, 60 million tonnes of MSAR fuel was set to be manufactured at a bitumen production facility in Norway and shipped directly to 'site B' in the country.

Quadrise said it was on site this week for preparatory work.

Current plans were for the trial to be completed in the third quarter of 2021, together with the completion of the site A feasibility study.

Finally, in Utah, Greenfield samples had been taken and were set to be shipped to Quadrise this week.

Once received, confirmatory proof-of-concept testing was expected to be completed within three weeks for both MSAR and bioMSAR.

"Quadrise is delighted with the recent progress across its main projects as well as the increasingly enthusiastic market response to bioMSAR - our recently launched cleaner, low carbon alternative to heavy fuel oil," said chairman Mike Kirk.

"The positive initial feedback from testing of bioMSAR on a Wärtsilä four-stroke engine in Finland is very encouraging and we look forward to receiving the full report in the coming weeks.

"This a key milestone towards being able to undertake larger commercial scale testing during the next twelve months with MSC, where we remain on track to complete the 4,000-hour LONO trials by mid-2022."

In Morocco, Kirk said commercial-scale testing with the company's client was on track for completion in the second half opf 2021 and, assuming the successful conclusion of the trial programme, the intention was to conclude a commercial supply agreement before the end of 2021.

"Finally, we look forward to receiving samples from Utah, completing the necessary testing, and then progressing the MSAR and bioMSAR heavy sweet oil opportunities with Greenfield and Valkor in the US."

At 0956 BST, shares in Quadrise Fuels International were down 5.71% at 3.63p.